New York Judge Calls for Expedited SEC Decision
America's securities regulator, the U.S. Securities and Exchange Commission (SEC), has been urged to quickly decide on a proposal to transform Celsius Network, a bankrupt cryptocurrency lender, into a bitcoin mining firm. Judge Martin Glenn, who oversees the bankruptcy proceedings of Celsius, called on the SEC to expedite the decision-making process during a court hearing. He emphasized the need for a prompt decision as Celsius and its creditors have progressed rapidly through Chapter 11.
Repayment Proposal to Partially Repay Frozen Accounts
The proposed plan aims to partially repay customers whose accounts have been frozen since before Celsius filed for bankruptcy in June 2022. The repayment will be made using a combination of cryptocurrency and stock in the new publicly traded mining entity. The management team of the mining entity will be led by Arrington Capital.
Judge's Ruling and SEC Approval
Judge Glenn stated that he would issue a ruling on the matter as soon as possible. However, even if the ruling favors the proposed transformation, it would still require approval from the SEC. In the event that the plan to exit Chapter 11 fails, Celsius may have to liquidate.
Support and Challenges to the Repayment Proposal
The repayment proposal has received widespread support from creditors. However, some of Celsius' customers are challenging the plan, as they prefer liquidation, which would result in receiving more cryptocurrency instead of shares in a new company that has yet to establish itself in the market. Additionally, there have been complaints about the fees paid to bankruptcy advisers who work to secure creditor support for the plan.
SEC Lawsuit Against Celsius
In July of this year, the SEC sued Celsius, accusing the failed crypto lender and its former CEO, Alexander "Alex" Mashinsky, of making fraudulent promises for the platform's "Earn Interest Program" and misleading investors about the company's financial state. The SEC also highlighted that investors were unable to withdraw billions of U.S. dollars in crypto assets when the business started to collapse.
What are your thoughts on the SEC's potential approval of Celsius' proposed transformation and repayment plan? Share your opinions in the comments section below.
Frequently Asked Questions
How much money can a gold IRA earn?
Yes, but not as often as you think. It all depends upon how much risk you are willing and able to take. You could have $1 million if you're willing to invest $10,000 each year for 20 years. But if you put all your eggs in one basket, you'll lose everything.
Diversifying investments is crucial. Inflation can make gold perform well. It is important to invest in assets that increase with inflation. Stocks perform this well because they rise whenever companies increase their profits. This is also true for bonds. They pay interest every year. They're very useful during periods of economic growth.
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How does gold and silver IRA work?
You can make investments in precious metals (such as gold or silver) without having to pay tax. People who want to diversify portfolios will find them attractive investments.
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Your beneficiaries might not receive the full amount of your account if your death occurs before you retire. After you have paid all your expenses, your estate should include sufficient assets to cover the balance of your account.
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Which is stronger? 14k Gold or Sterling Silver?
Although gold and silver can be strong metals, sterling silver is far less expensive as it contains 92% silver instead of 24%.
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Silver is often used to make jewelry and coins. Its value fluctuates based on demand and supply.
What proportion of your portfolio should you have in precious metals
Protect yourself against inflation by investing in physical gold. This is because you not only get the current price but also the future value when you invest precious metals. You can expect your investment to increase in value with the rise of metal prices.
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- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal so that you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (forbes.com)
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- Silver must be 99.9% pure • (forbes.com)
How to turn your IRA into a IRA with gold content
So you want to move your retirement savings from a traditional IRA into a gold IRA? This article will assist you in that endeavor. Here's how to make the switch.
Rolling over is the process of transferring money from one type of IRA to another. Rolling over an account offers tax advantages. Others prefer to invest in tangible assets, such as precious metals.
There are two types IRAs: Traditional IRAs or Roth IRAs. The difference between the two accounts is simple. Roth IRAs have no tax deductions, but Traditional IRAs can deduct taxes. This means that if you have $5,000 invested in a Traditional IRA, you will only be able take out $4850 after five years. You could keep every penny if the same amount was invested in a Roth IRA.
If you are looking to convert your traditional IRA into a gold IRA, here's what to know.
First, you will need to decide whether your current balance should be transferred to a new account. Transferring money will result in income tax being paid at the normal rate for earnings greater than $10,000. But if you choose to roll over your IRA, you won't be taxed on those earnings until you reach age 59 1/2.
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By: Lubomir Tassev
Title: Judge Urges SEC Decision on Transforming Celsius Network into Bitcoin Mining Firm
Sourced From: news.bitcoin.com/judge-urges-for-sec-decision-on-planned-celsius-restart-as-crypto-miner/
Published Date: Wed, 01 Nov 2023 03:30:59 +0000